Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1887-01-22


"plausiblen view of those who favor
the tax continues:
But it should also be considered that if the
mortgage is taxed and also the land then
there is a double tax, as far as the real estate
has been covered with the mortgage. If a
man buys house and lot for $1,000, of
which he borrows 5000, then both are
worth only $4,000, whilst they would be
taxed on $4,000. This would not be cqut-
able.
1t must also be considered that if the mort
gage is taxed the tax will probably have to
be paid by the borrower. Money can be
easily secured now in this State for less than
the legal rate of interest, but should tax be
placed on mortgages its effect would be to raise
the rate and compel the borrower to pay the
tax in addition to the present rate of interest.
Like the advocates of a protective
tariff, the Times enjoys the questionable
benefit of the surface view.
But let us subsoil our neighbor's
demonstration and look at it bottom
side mp, Briefly:
Thy house and lot are worth 100000.
The owner, however, has really but
-, 1000 in it, the mortgage the other
5000. The owner pays taxes upon
both invcstments-Onc not his own
the only evil the Times charges against
the proposed system.
Both" says the Times, "are worth
only $4,000, whilst they would be
taxed on 5,O00," and this, it is de-
clared, would not be equitable"
Let US take a step further-into the
county commissioners chamber when
the rate of taxation is being deter
mined. Let us suppose that 70 cents
per 500 had to be raised, how will the
borrower, owning the %l0, 900 property,
and the lender, owning the $4,000
mortgage, be affected by taxing the
mortgage ? The commissioners will
quickly discover something the Times
oyerlooked-that $15, ,0G0 as basis for
taxation Is q very different affair COM
pared with $4,000. so that last year
(supposing a change meanwhile from
old style to new while we had TO make
the rate - cents per$lG0 in order to get
F75 ont of this property, this year,
needing the same revenue, the mort
gage, now taxable, adds $4,000 to the
basis, which reduces the rate from 70
to so cents per 500. Then the bor-
rover would be taxed $50, the lender
$,2J, or 'f775 taken together.
Even then the borrower would pay
double" as much as the lender, but
the compensating advantages of pos
session and use of the property would
offset the disparity.
And if the terms of the mortgage
bind the maker to pay all taxes he is
no worse off than under the current
system. If they do not, everybody is
satisfied that the parties concerned
have yielded all that the Bill of Rights
wisely enjoins:
That every person in the State, or person
holding property therein, ought to contribute
his proportion of public taxes for the support
of the government, according to his actual
worth in real or personal property.
In the great tragedy Of levying and
collecting taxes the assessment is the
vital part, the, heart, the throbbing
core of the system. Its volume cannot
be abated without injury to every tax
payer. Yet there is no part of the
scheme less encouraged, less guarded,
less considered. Under specious pre-
texts taxpayers apply for abatements;
the authorities yield, neither properly
forecastipg the effect on all concerned,
it mag be, for years to come. On the
other hand, the provision for adding
to the basis is haphazard, unbusiness-
like, and II subject for revision about
once in ten years.
But the time is rapidly coming when
the basis of taxation will enjoy the en-
terprising guardianship which it pre-
eminently demands. Formulated into
regulations requiring annual adjust
ments, it will bristle with inquisitorial
features broad and searching enough
to arrest every fugitive species of
property and security. 1t will then be
fully understood that the true way to
keep the rate and revenue Of taxation
low is to let nothing tangible or hy-
Notwithstanding that exists under
the protection Of law-escape its fair
proportion of expense for government.
And if after all this be accomplished
it is found that the revenue is made
quate to meet legitimat expenses, bet
ter raise the assessment than the rate.
THE JOURNAL foreshadowed last
week a probable advance in wages.
1t did not imagine, however, that
the announcement would come so soon.
In welcoming it gladly, as the men
do, there are several considerations to
be avoided:
1t should not be construed as an an
swer to any expression of desire by the
men, late OF remote, but as the off
spring of long-admitted sense Of JUS